Karachi stocks fall on profit-taking in oils

Karachi stocks on Friday continued to move downward as investors mainly booked profits in oil scrips and because of the foreign selling, dealers said.
Analyst Mohammad Rizwan at Topline Securities said continuous foreigner selling and the last day of futures roll-over dented investors’ sentiments. “Short trading hours kept the market under pressure,” Rizwan said.
“The index heavyweight oil stocks mainly sustained the pressures. Oil and Gas Development Company, Pakistan Petroleum Limited and Pakistan State Oil decreased 2.15 percent, 2.60 percent and 1.63 percent, respectively.”
The benchmark Karachi Stock Exchange (KSE) 100-share Index shed 192.79 points, or 0.57 percent, to close at 33,885.13 points. KSE-30 shares index fell 110.02 points, or 0.52 percent, to end at 21,205.90 points.
As many as 348 scrips were active; of which 95 advanced, 230 declined and 23 remained unchanged. The ready market volumes stood at 400.887 million shares as compared to 549.22 million shares in the last trading session.
Analyst Ahsan Mehanti at Arif Habib Commodities said stocks closed on a negative note amid institutional profit-taking in the selected scrips.
“Falling global crude prices, the launch of inquiry into the practices of auto makers by the CCP (Competition Commission of Pakistan), an expected surge in CPI (consumer price index) inflation, deteriorating political environment and high taxes on corporate sector catalysed the bearish sentiments,” Mehanti said.
Analyst Ahmed Saeed at JS Global Capital said the market, dominated by future settlements, sustained the pressure as despite healthy volumes selling was witnessed across the board.
Profit-taking was witnessed in PAEL and a selling spree was seen in BYCO as both the scrips ended at their lower-circuit.
Dealers said buyers took interest in banking shares at the prospect of wide spread following an expected rise in the upcoming inflation figure.
Cement sector posted recoveries. Lucky Cement and Cherat Cement ended 1.4 percent and 0.9 percent higher, while DG Khan Cement and Maple Leaf Cement finished marginally lower by 1.0 percent and 1.4 percent, respectively.
Highest volumes were witnessed in K-Electric Limited with a turnover of 51.55 million shares. The scrip shed 22 paisas to close at Rs8.06/share. It was followed by Dewan Cement with a turnover of 29.817 million shares.
It inched down 97 paisas to end at Rs13.88/share. Pace Pakistan was the third with a turnover of 27.321 million shares. It edged down 58 paisas to close at Rs2.28/share.